Nigeria Inflation

Nigeria: Inflation hits over-two-year high in May

June 11, 2015

In May, consumer prices increased 1.1% over the previous month. The print was well above the 0.8% rise tallied in April and marked a 35-month high. According to the National Bureau of Statistics, all categories increased at a faster pace in May. Particularly, prices soared on the back of higher prices for fuel as well as for food as the late onset of rains pushed back the harvest season.

Annual headline inflation rose from 8.7% in April to 9.0% in May. The print marked the highest reading since April 2013. Annual average inflation inched up from April’s 8.2% to 8.3% in May, thereby reaching a 16-month high.

Core consumer prices, which exclude farm produce and energy prices, rose 1.1% in May over the previous month (April: +0.6% month-on-month). Regarding annual figures, core inflation rose from 7.7% in April to 8.2% in May, which marked an 11-month high.

FocusEconomics Consensus Forecast panelists expect inflation to average 9.8% in 2015, which is unchanged from last month’s forecast. For 2016, panelists forecast an inflation rate of 9.3%.